Which of the Following Statements Is True

question 19

Multiple Choice

Which of the following statements is true?

• A)The more diversified a financial intermediary, the higher the probability that it will default on its obligations and the more risky and illiquid the claims.
• B)The less diversified a financial intermediary, the higher the probability that it will default on its obligations and the more risky and illiquid the claims.
• C)The more diversified a financial intermediary, the lower the probability that it will default on its obligations and the more risky but also the more liquid the claims.
• D)The more diversified a financial intermediary, the higher the probability that it will default on its obligations and the more risky but also the more liquid the claims.

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Definitions:

Brain Activity

Brain activity refers to the electrical and chemical processes occurring within the brain that enable thinking, feeling, and bodily functions.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Sleepiness

A state of feeling drowsy or tired, often leading to a need for sleep.

Day

A period of 24 hours representing a full rotation of the Earth on its axis, traditionally divided into day (light) and night (dark) periods.